Ripple’s Chief Technology Officer, David Schwartz, recently addressed discrepancies in XRP’s reported circulating supply, drawing comparisons to Bitcoin holdings attributed to Satoshi Nakamoto. The discussion sheds light on the challenges of accurately defining “circulating supply” in cryptocurrency.  

An X user highlighted differences between the circulating supply figures for XRP provided by CoinMarketCap and XRPScan. According to CoinMarketCap, the asset’s circulating supply is 57.64 billion tokens, while XRPScan reports a higher figure of 62.23 billion tokens. Responding to this discrepancy, Schwartz emphasized that determining the circulating supply depends on specific criteria.  

“How you measure circulating supply depends on what you consider to be circulating and what you don’t consider to be circulating,” Schwartz explained. Using Bitcoin as an example, he posed a thought-provoking question: “Are Satoshi’s bitcoins circulating? Reasonable people can even disagree on which bitcoins are Satoshi’s.”  

The Role of Satoshi’s Bitcoin Holdings  

Satoshi Nakamoto, Bitcoin’s enigmatic creator, is believed to own over 1 million BTC. Although these coins are part of Bitcoin’s total supply, they have remained untouched since their initial mining, leading many to regard them as effectively out of circulation.  

CoinMarketCap reports Bitcoin’s total and circulating supply as 19.81 million BTC, out of a maximum supply of 21 million. While technically part of the total supply, Satoshi’s holdings are dormant due to their inactivity over the years. Schwartz’s analogy highlights the subjective nature of determining what qualifies as circulating in the crypto space.  

Ripple’s XRP holdings further complicate circulating supply calculations. The native token is divided into two main categories: tokens available in Ripple’s wallets and those locked in on-ledger escrows. These escrows release the asset monthly over 42 months, with any unused token returned to the escrow accounts.  

For tokens held in escrow, Ripple cannot access or use them until they are released. This mechanism raises questions about whether escrowed tokens should be included in circulating supply calculations.  

Broader Implications for Crypto Metrics  

The debate surrounding XRP’s circulating supply and its comparison to Satoshi Nakamoto’s Bitcoin underscores broader challenges in the cryptocurrency industry. Standardizing definitions for key metrics like circulating supply is essential for transparency and consistency, particularly as cryptocurrencies gain greater adoption in mainstream finance.  

By addressing these complexities, Schwartz’s comments highlight the need for nuanced discussions about the classification and measurement of digital assets.

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